The Lewis acid catalyzed synthesis and chromatographic purification of isatoic anhydride‐derived 2‐(2′‐anilinyl)‐1,3‐benzoxazole (2) can result in the co‐isolation of 2 and a light pink colored impurity (<5%). This latter species has been identified (NMR, single crystal X‐ray diffraction, mp) as 2′‐hydroxy‐2‐aminobenzanilide (3), which represents a predictable intermediate in the formation of 2. Compound 3 crystallizes in an orthorhombic crystal system of space group P212121 with four molecules in the unit cell (α = β = γ = 90°; a = 6.715 (2) Å, b = 12.100 (4) Å, c = 13.321 (4) Å; V = 1082.2 (6) Å3). Pure 2 is characterized as a colorless, high‐melting solid; unlike the dark colored oil that is isolated if 2 contains traces of 3. J. Heterocyclic Chem., (2010).